Alibaba quarterly revenue disappoints, triggering stock selloff

E-commerce giant Alibaba Group on Thursday reported weaker-than-expected revenue for its fiscal third quarter, sparking concerns about the company’s slowing growth momentum and sending its shares plunging as much as 10 percent on Wall Street.

The Chinese firm announced revenue of US$4.22 billion for the three months ended December, up 40 percent from a year earlier, but falling short of market expectations.

Analysts polled by Thomson Reuters had been looking for a figure of US$4.45 billion on average.

Meanwhile, margins also slipped as sales through mobile devices, typically smaller-ticket items, accounted for a bigger slice of total sales than in the previous quarter, Reuters noted.

The company reported a monetization rate of just below 2 percent from mobile, which now comprises 42 percent of overall gross merchandise value compared to 36 percent in the previous quarter.

Following the disappointing report and fears of increased regulatory oversight in China, analysts are cutting back on expectations on the e-commerce firm.

A mainland regulator said in a report published Wednesday that Alibaba has failed to do enough to stamp out counterfeit products and other illegal business on its online platforms.

An Alibaba executive said on Thursday that the report from the State Administration for Industry and Commerce was “flawed”, but the comment failed to assuage investors’ concerns.

Just when the prospect of Chinese developers raising funds through the domestic equity market seemed to be getting brighter, things took a nasty turn suddenly. Major developer Country Garden (02007.HK) announced on Monday that...

As Apple strives to boost iPhone X production in China to meet strong global demand for its latest flagship smartphone, the tech giant is also focusing on another important element in its business: Apple...

Singapore launched its first large-scale electric car-sharing program through which the land-scarce city state hopes to provide commuters with more transport options and steer them away from the need to buy their own cars,...

The high-profile founder of struggling Chinese tech conglomerate LeEco has been placed on an official blacklist of debt defaulters, a further blow to a firm that had spent heavily to compete in areas from...

Like startups involved in artificial intelligence, real estate-focused new technology businesses also have opportunities to showcase their strengths at a global event, a fact that a Hong Kong firm will readily attest. SnapFlat, an online...

US ride-hailing company Lyft Inc. on Tuesday launched its service in Toronto, marking the first time it has taken its battle against the much larger Uber Technologies Inc. outside of the United States, Reuters...